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THIRD DIVISION
DEPARTMENT OF AGRARIAN
REFORM, QUEZON CITY &
PABLO MENDOZA,
Petitioners,
- versus -
Present:
VELASCO, JR., J., Chairperson
PERALTA,
PEREZ,*
REYES, and
JARDELEZA, JJ.
ROMEO C. CARRIEDO,
Respondent.
Promulgated:
x--------------------------------------------~-~--x
DECISION
JARDELEZA, J.:
This is a Petition for Review on Certiorari' assailing the Court of
Appeals Decision dated October 5, 2006 2 and Resolution dated January l 0,
2007 3 in CA-G.R. SP No. 88935. The Decision and Resolution reversed the
Order dated February 22, 2005 4 issued by the D~partment of Agrarian
Reform-Central Office (DAR-CO) in Administrative Case No. A-9999-03CV-008-03 which directed that a 5.0001 hectare piece of agricultural land
(land) be placed under the Comprehensive Agrarian Reform Program
pursuant to Republic Act (RA) No. 6657 or the Comprehensive Agrarian
Reform Law.
Designated as Regular Member of the Third Division per Special Order No. 2311 elated January
14, 2016.
Rollo, pp. 14-22.
Penned by Associate Justice Jose L. Sabio Jr. with Associate Justices Regalado E. Maambong and
Ramon M. Bato, Jr. concurring, id. at 164-179.
Penned by Associate Justice Jose L. Sabio Jr. with Associate Justices Regalado E. Maambong and
Ramon M. Bato, Jr. concurring,jd. at 28-29.
CA mllo, pp. 56-61,
Decision
The Facts
The land originally formed part of the agricultural land covered by
Transfer Certificate of Title (TCT) No. 17680,5 which in turn, formed part of
the total of 73.3157 hectares of agricultural land owned by Roman De Jesus
(Roman).6
On May 23, 1972, petitioner Pablo Mendoza (Mendoza) became the
tenant of the land by virtue of a Contrato King Pamamuisan7 executed
between him and Roman. Pursuant to the Contrato, Mendoza has been
paying twenty-five (25) piculs of sugar every crop year as lease rental to
Roman. It was later changed to Two Thousand Pesos (P2, 000.00) per crop
year, the land being no longer devoted to sugarcane.8
On November 7, 1979, Roman died leaving the entire 73.3157
hectares to his surviving wife Alberta Constales (Alberta), and their two
sons Mario De Jesus (Mario) and Antonio De Jesus (Antonio).9 On August
23, 1984, Antonio executed a Deed of Extrajudicial Succession with Waiver
of Right10 which made Alberta and Mario co-owners in equal proportion of
the agricultural land left by Roman.11
On June 26, 1986, Mario sold12 approximately 70.4788 hectares to
respondent Romeo C. Carriedo (Carriedo), covered by the following titles
and tax declarations, to wit:
1.
2.
3.
4.
5.
Decision
The parties to this case were involved in three cases concerning the
land, to wit:
The Ejectment Case
(DARAB Case No. 163-T-90 | CAG.R. SP No. 44521 | G.R. No.
143416)
On October 1, 1990, Carriedo filed a Complaint for Ejectment and
Collection of Unpaid Rentals against Mendoza before the Provincial
Agrarian Reform Adjudication Board (PARAD) of Tarlac docketed as
DARAB Case No. 163-T-90. He subsequently filed an Amended Complaint
on October 30, 1990.15
In a Decision dated June 4, 1992,16 the PARAD ruled that Mendoza
had knowledge of the sale, hence, he could not deny the fact nor assail the
validity of the conveyance. Mendoza violated Section 2 of Presidential
Decree (PD) No. 816,17 Section 50 of RA No. 119918 and Section 36 of RA
15
16
17
18
Decision
No. 3844,19 and thus, the PARAD declared the leasehold contract
terminated, and ordered Mendoza to vacate the premises.20
Mendoza filed an appeal with the Department of Agrarian Reform
Adjudication Board (DARAB). In a Decision dated February 8, 1996,21 the
DARAB affirmed the PARAD Decision in toto. The DARAB ruled that
ownership of the land belongs to Carriedo. That the deed of sale was
unregistered did not affect Carriedos title to the land. By virtue of his
ownership, Carriedo was subrogated to the rights and obligation of the
19
20
21
Decision
22
23
24
25
26
27
28
29
30
31
32
Id. at 79-80.
Id. at 89-95.
Id. at 92-93.
CA rollo, p. 113.
Rollo, pp. 96-97.
Id. at 98.
DAR-CO Records (A-9999-03-CV-008-03), pp. 451-452.
Decreeing the Emancipation of Tenants from the Bondage of the Soil, Transferring to Them the
Ownership of the Land They Till and Providing the Instruments and Mechanism Therefor (1972).
DAR-CO Records (A-9999-03-CV-008-03), pp. 553-555.
Id. at 511.
Id. at 510.
Decision
Decision
Decision
Carriedo filed a Petition for Review54 with the CA assailing the DARCO Order. The appeal was docketed as CA-G.R. SP No. 88935. In a
Decision dated October 5, 2006, the CA reversed the DAR-CO, and declared
the land as Carriedos retained area. The CA ruled that the right of retention
is a constitutionally-guaranteed right, subject to certain qualifications
specified by the legislature.55 It serves to mitigate the effects of compulsory
land acquisition by balancing the rights of the landowner and the tenant by
implementing the doctrine that social justice was not meant to perpetrate an
injustice against the landowner.56 It held that Carriedo did not commit any of
the acts which would constitute waiver of his retention rights found under
Section 6 of DAR Administrative Order No. 02, S.2003.57 The dispositive
portion of the Decision reads:
WHEREFORE, premises considered and pursuant to
applicable law and jurisprudence on the matter, the present
Petition is hereby GRANTED. Accordingly, the assailed
Order of the Department of Agrarian Reform-Central
Office, Elliptical Road, Diliman, Quezon City (dated
February 22, 2005) is hereby REVERSED and SET
ASIDE and a new one enteredDECLARING the subject
landholding as the Petitioners retained area. No
pronouncements as to costs.
SO ORDERED.58
Id. at 59-60.
Id. at 61.
Id. at 11-47.
Rollo, p. 170-171.
Id. at 171.
Id. at 173-175; 2003 Rules and Procedure Governing Landowner Retention Rights.
Rollo, pp. 177-176.
Id. at 17.
Id. at 18.
Decision
Id.
Rollo, pp. 19-20.
Id. at 20.
Id. at 21.
Decision
10
Decision
11
6.2
6.3
6.4
6.5
6.6
6.7
Id. at 128 citing Daez v. Court of Appeals, G.R. No. 133507, February 17, 2000, 325 SCRA 856.
Paragraph 4, Section 6 of RA No. 6657 provides:
Upon the effectivity of this Act, any sale, disposition, lease, management,
contract or transfer of possession of private lands executed by the original landowner
in violation of the Act shall be null and void: Provided, however, That those
executed prior to this Act shall be valid only when registered with the Register of
Deeds within a period of three (3) months after the effectivity of this Act. Thereafter,
Decision
12
68
69
70
4.1
4.2
4.3
all Registers of Deeds shall inform the Department of Agrarian Reform (DAR)
within thirty (30) days of any transaction involving agricultural lands in excess of
five (5) hectares.
Rollo, p. 140.
Olizon v. Court of Appeals, G.R. No. 107075, September 1, 1994, 236 SCRA 148, 157-158.
Periquet, Jr. v. Intermediate Appellate Court, G.R. No. 69996, December 5, 1994, 238 SCRA 697.
Decision
13
The foregoing rules give Carriedo any time before receipt of the
notice of coverage to exercise his right of retention, or if under compulsory
acquisition (as in this case), within sixty (60) days from receipt of the notice
of coverage. The validity of the notice of coverage is the very subject of the
controversy before this court. Thus, the period within which Carriedo should
exercise his right of retention cannot commence until final resolution of this
case.
Even assuming that the period within which Carriedo could exercise
his right of retention has commenced, Carriedo cannot be said to have
neglected to assert his right of retention over the land. The records show that
per Legal Report dated December 13, 199971 prepared by Legal Officer Ariel
Reyes, Carriedo filed an application for retention which was even contested
by Pablo Mendozas son, Fernando.72 Though Carriedo subsequently
withdrew his application, his act of filing an application for retention belies
the allegation that he abandoned his right of retention or declined to assert it.
In their Memorandum73 however, petitioners, for the first time, invoke
estoppel, citing DAR Administrative Order No. 05 Series of 200674 (DAR
AO 05-06) to support their argument that Carriedo waived his right of
retention.75 DAR AO 05-06 provides for the rules and regulations governing
the acquisition and distribution of agricultural lands subject of conveyances
under Sections 6, 7076 and 73 (a)77 of RA No. 6657. Petitioners particularly
cite Item no. 4 of the Statement of Policies of DAR AO 05-06, to wit:
II.
Statement of Policies
77
Decision
14
Citing this provision, petitioners argue that Carriedo lost his right of
retention over the land because he had already sold or disposed, after the
effectivity of RA No. 6657, more than fifty (50) hectares of land in favor of
another.78
In his Memorandum,79 Carriedo maintains that petitioners cannot
invoke any administrative regulation to defeat his right of retention. He
argues that administrative regulation must be in harmony with the
provisions of law otherwise the latter prevails.80
We cannot sustain petitioners' argument. Their reliance on DAR AO
05-06 is misplaced. As will be seen below, nowhere in the relevant
provisions of RA No. 6657 does it indicate that a multiple or series of
transfers/sales of land would result in the loss of retention rights. Neither do
they provide that the multiple or series of transfers or sales amounts to the
waiver of such right.
The relevant portion of Section 6 of RA No. 6657 referred to in Item
no. 4 of DAR AO 05-06 provides:
Section 6. Retention Limits. Except as otherwise
provided in this Act, no person may own or retain, directly
or indirectly, any public or private agricultural land, the
size of which shall vary according to factors governing a
viable family-size farm, such as the commodity produced,
terrain, infrastructure, and soil fertility as determined by the
Presidential Agrarian Reform Council (PARC) created
hereunder, but in no case shall retention by the landowner
78
79
80
Rollo, p. 245.
Id. at 214-236.
Id. at 227, citing Philippine Petroleum Corp., v. Municipality of Pililla, Rizal, G.R. No. 90776,
June 3, 1991, 198 SCRA 82.
Decision
15
Sections 6 and 70 are clear in stating that any sale and disposition of
agricultural lands in violation of the RA No. 6657 shall be null and void.
Under the facts of this case, the reasonable reading of these three provisions
in relation to the constitutional right of retention should be that the
consequence of nullity pertains to the area/s which were sold, or owned by
the transferee, in excess of the 5-hectare land ceiling. Thus, the CA was
correct in declaring that the land is Carriedos retained area.81
Item no. 4 of DAR AO 05-06 attempts to defeat the above reading by
providing that, under the principle of estoppel, the sale of the first five
hectares is valid. But, it hastens to add that the first five hectares sold
81
Decision
16
corresponds to the transferor/s retained area. Thus, since the sale of the first
five hectares is valid, therefore, the landowner loses the five hectares
because it happens to be, at the same time, the retained area limit. In reality,
Item No. 4 of DAR AO 05-06 operates as a forfeiture provision in the guise
of estoppel. It punishes the landowner who sells in excess of five hectares.
Forfeitures, however, partake of a criminal penalty.82
In Perez v. LPG Refillers Association of the Philippines, Inc.,83 this
Court said that for an administrative regulation to have the force of a penal
law, (1) the violation of the administrative regulation must be made a crime
by the delegating statute itself; and (2) the penalty for such violation must be
provided by the statute itself.84
Sections 6, 70 and 73 (a) of RA No. 6657 clearly do not provide that a
sale or disposition of land in excess of 5 hectares results in a forfeiture of the
five hectare retention area. Item no. 4 of DAR AO 05-06 imposes a penalty
where none was provided by law.
As this Court also held in People v. Maceren,85 to wit:
The reason is that the Fisheries law does not expressly
prohibit electro fishing. As electro fishing is not banned
under the law, the Secretary of Agriculture and Natural
Resources and the Natural Resources and the
Commissioner of Fisheries are powerless to penalize it. In
other words, Administrative Order Nos. 84 and 84-1, in
penalizing electro fishing, are devoid of any legal basis.
Had the lawmaking body intended to punish electro
fishing, a penal provision to that effect could have been
easily embodied in the old Fisheries Law.86
The repugnancy between the law and Item no. 4 of DAR AO 05-06 is
apparent by a simple comparison of their texts. The conflict undermines the
82
83
84
85
86
See Cabal v. Kapunan, Jr., G.R. No. L-19052, December 29, 1962, 6 SCRA 1059, 1064:
Such forfeiture has been held, however, to partake the nature of a penalty.
In a strict signification, a forfeiture is a divestiture of property
without compensation, in consequence of a default or an offense, and
the term is used in such a sense in this article. A forfeiture, as thus
defined, is imposed by way of punishment, not by the mere
convention of the parties, but by the lawmaking power, to insure a
prescribed course of conduct. It is a method deemed necessary by the
legislature to restrain the commission of an offense and to aid in the
prevention of such an offense. The effect of such a forfeiture is to
transfer the title to the specific thing from the owner to the sovereign
power. (23 Am. Jur. 599)
In Blacks Law Dictionary, a forfeiture is defined to the the
incurring of a liability to pay a definite sum of money as the
consequence of violating the provisions of some statute or refusal to
comply with some requirement of law. It may be said to be a penalty
imposed for misconduct or breach of duty. (Com. Vs. French, 114
S.W. 255)
G.R. No. 159149, June 26, 2006, 492 SCRA 638.
Id. at 649.
G.R. No. L-32166, October 18, 1977, 79 SCRA 450.
Id. at 456.
Decision
17
91
Decision
18
Decision
19
Commissioner of Internal Revenue v. Court of Appeals, G.R. No. 108358, January 20, 1995, 240
SCRA 368.
CIVIL CODE OF THE PHILIPPINES, Article 7.
Valerio v. Secretary of Agriculture and Natural Resources, G.R. No. L-18587, April 23, 1963, 7
SCRA 719.
People v. Maceren, supra note 86 at 459.
Cebu Institute of Technology v. Ople, G.R. No. L-58870, December 18, 1987, 156 SCRA 629,
658.
Radio Communications of the Philippines, Inc. v. Santiago, G.R. Nos. L-29236 & L-29247,
August 21, 1974, 58 SCRA 493, 498.
Villegas v. Subido, G.R. No. L-26534, November 28, 1969, 30 SCRA 498, 511.
Rollo, p. 21.
Decision
20
Associate Justice
WE CONCUR:
103
1()4
105
Decision
.PERALTA
Associate Justice
REZ
Associate Justice
ATTESTATION
I attest that the conclusions in the above 9ecision had been reached in
consultation before the case was assigned to !J.fe writer of the opinion of the
Court's Division.
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, and the
Division Chairperson's attestation, it is hereby certified that the conclusions
in the above Decision had been reached in consultation before the case was
assigned to the writer of the opinion of the Court's Division.
WILFRFI/J -/.
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